Irish Consumer Sentiment Declines in July Amid Mounting Cost Pressures and Tariff Threats

The Irish League of Credit Unions (ILCU), in partnership with Core Research, has released the latest findings from its Credit Union Consumer Sentiment Survey, revealing a modest decline in consumer confidence for July 2025. The sentiment index fell to 59.1, down from 62.5 in June, marking a return to levels last seen in April and significantly below the long-term average of 83.9.

The drop in sentiment is attributed to intensifying cost-of-living pressures, particularly in food and insurance prices, and renewed fears of a 30% tariff on EU exports to the United States. These developments have heightened concerns about household finances and the broader economic outlook.

Key Findings:

• Cost of Living remains the top concern for Irish consumers, cited by 37% of respondents.
• Housing shortages and trade threats follow at 19% and 8%, respectively.
• Food price inflation has accelerated, with staples like beef (+21.9%), butter (+18.6%), and milk (+12.3%) seeing sharp increases.
• Expectations for personal finances over the next 12 months saw the steepest month-on-month decline.
• Despite economic concerns, job sentiment remained stable, supported by strong labour market indicators and new investment announcements.

David Malone, CEO of the Irish League of Credit Unions, commented:

“The July survey highlights the diverse and deeply personal financial challenges facing Irish households. Credit unions remain committed to understanding these unique circumstances and providing tailored support to our members.”

The survey also revealed a growing disconnect between consumer sentiment and official economic forecasts, suggesting elevated uncertainty and a cautious outlook for spending in the months ahead.

About the Survey:
The Credit Union Consumer Sentiment Survey is conducted monthly in partnership with Core Research and aims to capture the financial mood and priorities of Irish consumers.

The entire report can be viewed here